Big Projects: Port, industrial park are key Belt & Road Initiative projects in Malaysia

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China and Malaysia are holding talks on a stalled multi-billion dollar railroad project. Other major projects are forging ahead. That includes expanding a major port and developing an industrial park that's drawing Chinese investors, including a giant steel plant. CGTN's Rian Maelzer reports from Malaysia's east coast.

This vast Chinese steel plant brands itself as "In Malaysia, For Malaysia". And in this underdeveloped east coast region, Alliance Steel is already employing more than 3000 locals.

MUHAMAD HAFIZ SAHLAN WORKER, ALLIANCE STEEL "Working here we can pay all our bills, support ourselves well, afford to buy a car. The wages we get here are high."

Alliance Steel is located in the Malaysia-China Kuantan Industrial Park or MCKIP.

RIAN MAELZER KUANTAN, MALAYSIA "This Malaysia-China industrial park is the twin of a park in Qinzhou in southern China where several Malaysian companies have set up operations."

A few kilometers away is Kuantan Port, a 60-40 partnership between Malaysia's IJM and China's Beibu Port Group. The port recently opened a new deep-water terminal, tripling the size of the ships it can handle. The terminal is bringing in millions of tonnes of coal and iron ore for Alliance Steel at the MCKIP industrial park.

SOAM HENG CHOON CEO, IJM CORPORATION "We are looking at a very fast take up rate at the Malaysia-China Kuantan Industrial Park and looking at the businesses there, we will then align the expansion of phase 2 to suit the cargo that is coming through there. These projects, Kuantan port and also the MCKIP, are the two very significant tangible assets that you can see from the initiative under the BRI."

STEVE HU DEPUTY PROJECT COMMANDER, ALLIANCE STEEL "Kuantan Port is really beneficial from a logistics standpoint, which is key to steel industry. Since it's located at the heart of Southeast Asia, Kuantan port has natural advantages in terms of the acquisition of raw material and exporting the finished products."

Alliance Steel, and the joint venture industrial park and port are still just beginning to show the economic benefits such Malaysia-China collaborations can bring. Rian Maelzer, CGTN, Kuantan, Malaysia.